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The increasing potential of your products in the Chinese market
Many Western producers of sun protection systems, roller shutters, shadings, entry and garage doors believe that there is no space for their products in China, “the world’s largest factory.” Many claim that they will never be able to compete with made-in-China products. However, many urban middle-class Chinese customers are no longer interested in low-price and low-quality products. As the number of urban middle-class customers grows, so also grows their purchasing capacity and their interest in quality products.
The China real estate market and urbanization are growing rapidly, as real estate is the preferred investment for the large, emerging middle class. More than 300 million people have moved from the country to cities in the past 30 years, and an additional 350 million are on the way. In 2016, China had 145 cities of more than one million and 23 cities with more than five million. Before long, there will be one billion city dwellers in China, providing a massive market for the housing industry.
According to the McKinsey Report, some 350 million people in China moved out of poverty since 1990, with disposable income per capita rising 300 percent during that period. In the last century, the American middle class was the growth engine for the world economy. But now, the growth engine is the Asia-Pacific region, which will account for two-thirds of the world’s middle class by 2030.
The Chinese consumers’ focus on “value for money” has driven the rise of real estate companies. As urbanization accelerates, consumer spending is becoming like the West’s middle class. Urban Chinese are shopping to meet emotional needs, driving a skyrocketing demand for higher-quality products, food, and entertainment. All these factors are good news for companies that produce quality products and are ready to invest in the growing Chinese market.